Abstract:

Law 21/2001 regulates the fiscal and administrative measures of the financing system of the Autonomous Communities. With reference to personal income tax, Art. 38 establishes their regulatory powers, which can be summarised in three aspects: the regional scale of taxation, the regional tranche of the deduction for the acquisition of a home and the deductions specific to each region. So far, the different regions have only used their powers in the area of deductions. Based on the 2000 EUHP, which for the first time offers disaggregated information on households by Autonomous Community, we intend to carry out a microsimulation exercise with two objectives in mind. First, to estimate the main magnitudes of personal income tax, breaking down this information by Autonomous Community. Second, to analyse the distributional effect derived from the current structure of the tax and its decomposition according to the different elements that compose it, as well as the impact of the different regional policies materialised in the establishment of deductions.

Reference:

Fuenmayor, A.; Granell, R.; Higón, F.J. (2006): Las competencias normativas de las comunidades autónomas en el IRPF: eficacia y efecto redistributivo, Cuadernos de Información Económica, 195, pp. 35-45.